We will approach CAG draft report with an open mind: Jaipal Reddy

We will approach CAG draft report with an open mind: Jaipal Reddy

NEW DELHI: Rejecting the Opposition charge that favours and undue benefits were given to private operators, Petroleum and Natural Gas Minister S. Jaipal Reddy on Monday said the government would probe the gas deal with an open mind and reply to the Comptroller and Auditor-General's (CAG) “draft report” on KG Basin and Rajasthan oil blocks within eight weeks.

Such attacks by the Opposition would harm decision-making at higher levels, Mr. Reddy said. He rejected senior BJP leader and PAC Chairman Murli Manohar Joshi's attack on Home Minister P. Chidambaram on the issue of CAG's indictment of his Ministry for alleged favours to private firms. “If there is valid criticism made in the final report, we will not hesitate to correct ourselves or take remedial steps. But that does not mean we should jump to conclusions,” he said.

The CAG draft report had accused the Petroleum Ministry of showing undue benefits to Mukesh Ambani-owned Reliance Industries Limited (RIL) in approving the KG Basin development plan. It also accused the Ministry of showing undue favours to Cairn India Limited in the Rajasthan oil blocks.

The draft report had rapped the Directorate-General of Hydrocarbons (DGH) for allowing an increase in estimated capital expenditure by RIL from $2.4 billion to $8.5 billion between May 2004 and October 2006.

Terming “baseless” the criticisms by Dr. Joshi and CPI(M) leader Sitaram Yechury, the Minister told journalists that what the CAG had sent to his Ministry was only a draft report and a proper reply would be submitted by his Ministry.

“By making this criticism, I am afraid they are prejudicing the process of objective examination by the CAG.” He said the CAG, after incorporating his Ministry's comments, would table the final report in Parliament after which it would go to the PAC.

“Why should a senior member of Parliament be in such haste? It is not very edifying for a senior member like Dr. Joshi. We will probe the gas deal with an open mind. The draft report does not make any reference to the issue of pricing of gas,” he said.

Focussing his criticism on Dr. Joshi, he said the PAC Chairman should refrain from sensation-mongering. “Those raising and criticising the draft CAG report are ‘prejudicing the enquiry.' Dr. Joshi should leave the job to younger people in the party [BJP] and not indulge in this [kind of criticism],” Mr. Reddy said.

On June 17, Dr. Joshi attacked the government for alleged favours to companies like RIL and singled out Mr. Chidambaram, who was the then Finance Minister, for criticism. He demanded Mr. Chidambaram's removal from the Cabinet.

Mr. Reddy said while the draft report did not make any reference to the $4.20 per mmBtu price fixed for RIL's KG-D6 gas, Dr. Joshi had brought in an “extraneous matter and singled out Mr. Chidambaram for the decision due to personal agenda. If decisions taken by the EGoM are to be criticised personally, then there is no shelter for Ministers. Decisions taken in the EGoM are collective if such attacks are made, people will be afraid to take decisions.”

“No role in

leak of report”

He denied his Ministry's role in the leakage of the CAG draft report. He challenged Dr. Joshi to give notice of breach of privilege in Parliament if he felt his right as an MP was violated.

At the press conference, Mr. Reddy said, “If Dr. Joshi is concerned and feels the leakage of the report tantamount to violation of his rights, he should give notice of breach of privilege in Parliament.”

“I am confident the CAG will look at our reply with an open mind. If in the final report they come out with criticism on some issues, we will also look at them with open mind. Any observation or recommendation in the final report, which is accepted by the government, we will act upon them and if there are some which are not agreed upon, we will not act on them. I am not saying that CAG observations are baseless. If there is some substance, we should be concerned,” the Minister said.

He asked everyone to exercise restraint until the final report was out.